Dear ERRA EMER Committee,
The Report issued by EMER Committee in May 2024 focused on approval of investments by energy regulators. The Report to be presented in May 2025 at ERRA Annual Conference in Muscat builds on the last year report in order to focus on two important aspects:
- Before the approval: how the process of evaluating grid investments, planned by TSOs (and, where applicable, by DSOs) is regulated and performed; in particular, some requirements that regulators can set in order to make well-informed approval decisions are investigated, like for instance cost/benefit analysis and other tools that can help regulators in planned grid investment evaluation; these requirements can be differentiated according to size thresholds (above some thresholds, a deeper analysis can be requested);
- After the approval: regulators can introduce incentives to speed up execution of investments (through milestones), and/or for ensuring efficiency in investment expenditure (in respect of a cost baseline). Finally, monitoring is an important regulatory function to ensure reconciliation between planned timeline and costs and actual values.
The questionnaire aims to capture the modalities of energy investment evaluation (before the approval) and incentives (if any) and monitoring (after the approval) in the different jurisdictions. Issues to be investigated are classified in 8 sections, and for each section there is a draft list of possible Recommendations. During the data collection period, good practice national cases are also expected to be provided, ideally on each (or most) of the following aspects according to ERRA Member organizations’ availability and willingness to contribute to final Report with short case studies:
Sections:
- Investment evaluation process
- Size threshold for evaluation
- Cost benefit analysis
- Scenarios and treatment of uncertainty
- Stakeholder engagement
- Financiability of planned investments for their approval
- Incentives for timeliness of execution
- Incentives for efficiency of execution
- Monitoring of investment execution after their approval
We would appreciate to receive your answers by February 20, 2025, please!
Kindly note that there is a Save and Continue Later button at the end of the survey.
Your valuable time and contribution is highly appreciated!
